The IoT Business Models
We live in times when technologies like IoT require new business models and we also need to think about sustainability. Besides selecting the right business model to sell your product, you have to keep in mind that sales and marketing are changing.
According to an article published at danielelizalde.com, the author advises us to have a very good business model to profit from our innovation work. He recommends the book “Business Model Generation”. If you do not have it, I recommend that you get it because it is one of the most popular books that entrepreneurs have been using for years.
There are other books written by Alexander Osterwalder that are also promoted on the Strategyzer website and that help you with your business model.
Strategyzer published a video explaining the Business Model and it is really good: https://youtu.be/QoAOzMTLP5s
I can personally recommend new books like:
The Invincible Company
Value Proposition Design
Understand what is the Value Proposition Canvas and learn how to use it:
Testing Business Ideas
Besides coming up with good ideas and an effective business plan, you have to test your business ideas. You can check this book and even a video by Strategyzer:
Business Model Design
THe following video explians about the business model design in the 21st century: https://youtu.be/jpXSZaS4IhA
You can learn more about these books at the following website:
These books will give you a very good base and save you a lot of time.
Find more tools from Strategyzer and learn about some certification courses: https://youtu.be/q8SD-AtfXdk
ONLINE COURSE ABOUT NEW BUSINESS MODELS
You can also check a free certification course offered by the University of Virginia via Coursera called: New Models of Business in Society. This course is part of the Entrepreneurship: Growing Your Business Specialization.
Please notice that the offer is until the end of December 2020.
During my entrepreneurial journey, I came across a very good website that belongs to Steve Blank where there are videos, tools, and other resources that can help to build a very good business:
Steve Blank is a visionary with many years of experience in innovation and business.
The 7 IoT Business Models
Now that we have gone through the basics of business model creation, let’s go into specific business models for IoT:
IoT Business Model #1: Subscription Model
This is a very popular model. There are usually several subscription packages provided by a company where one is free and the other ones are monthly fees that differ according to the services included. This is a very good idea since it permits companies to get revenue constantly and maintain their relationship with the customer.
IoT Business Model #2: Outcome-Based Model
In this business model, the focus is on the outcome of the service or in other words, the result.
You can see this business model in coaching companies where people pay for the results like losing weight, getting 5 or 6-figure clients, becoming an Influencer, etc.
IoT Business Model #3: Asset-Sharing Model
I remember having been interviewed about my feedback on car-sharing to be implemented in Sweden. This business model can be applied to many different areas in order to reduce expenses.
Listen to this recording titled “IoT Energy and the Storage Revolution” at https://danielelizalde.com/energy-storage-revolution/
IoT Business Model #4: The “Razor Blade” Model
Here the goal is to get a product at a low price or for free in the customer’s hands as a way of start selling other products. This is good for products that are replacements and that the customer needs to order frequently.
IoT Business Model #5: Monetize Your IoT Data
This model is about collecting data besides selling your products. This data can later be sold to third-parties.
Examples of this model are: LinkedIn and Facebook.
IoT Business Model #6: Pay-Per-Usage
You can see this business model in IBM for example where you pay for what you use in the cloud.
IoT Business Model #7: Offer a Service
This approach has some pitfalls which you can learn about in this recording: https://danielelizalde.com/services-in-product-companies/
The IoT Journey
There is an article called “Verizon Business ThingSpace IoT Marketplace, a new simple way to manage the IoT journey” that is very interesting.
This is “a new easy-to-use digital portal that helps customers – from small and medium-sized businesses to large enterprises – quickly purchase, activate and manage customized IoT solutions” according to the article published on IoT Business News.
Remember to have a very good business model for your products and services. It’s not enough having a good product, you need to make a profit in order to continue growing your business.
Written by Space Entrepreneur Veronica Chiaravalli